Cummins India rides on exports, likely to gain as demand for power grows

Diesel engine maker projected to benefit as companies planning to build data centres seek power providers

Expectations of a revival in key segments such as infrastructure, market share gains, hig­her exports, and improving margins led to a spurt in stock prices of Cummins India, which has risen 50 per cent since the start of this calendar year.

Says Amit Mahawar of Edelweiss Research: “The confluence of demand drivers — construction, real estate, industrial capex, data centres, and exports — coupled with sharper cost control/potential pricing benefit could translate into a stronger-than-expected earnings trajectory.” Brok­erages have revised their earnings estimates by 5-20 per cent for financial year 2021-22 (FY22) and FY23. In the domestic power generation (power